1. Be Ready – Know Your Marketplace. Most foreclosures sell in 3 days or less so spend some time with your Realtor getting to know your target area. If you know the comps before a foreclosure hits the area, you will be prepared to act quickly and trump any other competitive buyers. Have a pre-approval ready and waiting to roll so there is no hesitation. If you wait, you might lose the deal before it even gets off the ground.

2. Do Not Be Afraid To Get Your Hands Dirty – Some foreclosures are in great condition but, by and large, you are going to have to invest some sweat equity to get your new home habitable. Do not let the cosmetics scare you away; look for strong structural components like good floorplans, great neighborhoods (remember: location, location, location), and newer roofs. You can change the carpet – you cannot move your house.

3. Know Your House Inside and Out – The whole idea behind buying a foreclosure is to save money, right? Then spend a little extra up front – on the home inspection. Banks make no representations (or guarantees) about the properties they sell and they are not liable for repairs after closing. Get the best inspector you can afford and look for things that might be costly trouble down the road. To save money, do your due diligence.

4. The Asking Price Is Often Very Close To The Selling Price – A really common misconception is that banks will take huge cuts in their asking prices for every foreclosure. Much of the time, this is wrong, wrong, wrong. Banks have specific guidelines about what they will and will not accept and they know that if you do not buy it today then someone else will look tomorrow. This is especially true with homes that have a lot of appeal. If you really like your house, make a reasonable offer and BUY it!

5. A Realtor Will Do You A World Of Good – Agents spend lots of time combing the market for good deals. Good ones know their marketplace intimately and have often worked closely with many of your future neighbors. Use their experience to help you find the best deal possible. They will have the objective, professional eye you need to spot resale potential before you purchase. This single choice will save you thousands down the road – and agents usually charge buyers nothing to work with them!

It is really tough to be a seller right now – you cannot compete with the banks. If, however, you are thinking about buying a property, then there has not been a time like this to buy in decades. With home prices and interest rates at all time lows (but interest rates are rising!), homeownership is easier than it ever will be again for qualified buyers.

Alex Krumm is a professional Realtor living in sunny Sarasota, Florida and a partner in Sarasota Property Group. Check out the most amazing Property Search Tool in the world, Brand New and incredible!

Call it a sign of the times: every day, thousands of homes are being repossessed by banks and sold to the highest bidder. Some of them are real junkers but many of these foreclosure homes are in excellent condition and are priced WAY below market value. With a little patience and the right help – and the guidelines below – you could be well on your way to homeownership for a lot less than you could have imagined a few years ago.

1. Be Ready – Know Your Marketplace. Most foreclosures sell in 3 days or less so spend some time with your Realtor getting to know your target area. If you know the comps before a foreclosure hits the area, you will be prepared to act quickly and trump any other competitive buyers. Have a pre-approval ready and waiting to roll so there is no hesitation. If you wait, you might lose the deal before it even gets off the ground.

2. Get Out Your Elbow Grease – It is totally possible to buy foreclosures that are in mint condition but they usually fetch higher prices than their “handyman special” neighbors. If you want the bargain basement top-notch deal on a property, be ready to get your hands dirty!

3. Know The House You Are Buying – The home inspection is NOT the place to save money. Get the best inspector you can afford and be present at the inspection. If the house has a septic tank, make sure you get that inspected, too. Banks usually will not fix anything so it is really important to know the condition of the home you are investing in.

4. Be Prepared To Pay Close to Full Asking Price – In some of the hotter foreclosure markets (Florida, for example) banks are not willing to negotiate much on great houses. They price them at 60%-80% of fair market value up front in order to sell quickly and, if you waste time nickel-and-diming the bank, someone else is likely to purchase the home you like. This is especially true of new foreclosure listings.

5. Most Importantly, Use a Realtor. The right agent can let you know about new foreclosure properties that fit your needs as soon as they come on the market, not to mention help you navigate the mountains of paperwork and negotiate a better price with the bank. The agent will also have the working knowledge to help you avoid buying a lemon. And, best yet, the realtor is free to you because the bank pays the commission.

It is really tough to be a seller right now – you cannot compete with the banks. If, however, you are thinking about buying a property, then there has not been a time like this to buy in decades. With home prices and interest rates at all time lows (but interest rates are rising!), homeownership is easier than it ever will be again for qualified buyers. And, for first time buyers, there is a once in a lifetime opportunity to get the government pay $8,000 towards your new home.